There are changes coming to how car insurance benefits will work for Ontario drivers. Effective Sept. 1, 2010, the Ontario Government through the Financial Services Commission of Ontario (FSCO) announced Ontario Regulation Number 34/10; which changes how automobile insurance works. The Ontario Government makes changes to Ontario's car insurance around once every five years.

One of the biggest changes is the decreased limit of medical rehabilitative benefits for Ontario's accident victims.

Under the prior system, anyone who purchased a standard policy of insurance had at the very minimum $100,000 available to them in medical and rehabilitative benefits. What this means is that under the previous system, if you were hurt or injured as a result of the use or operation of an automobile, you were entitled to various healthcare and rehabilitative treatment for up to $100,000. You were entitled to up to $100,000 worth of physiotherapy, chiropractic treatment, occupational therapy, massage, cranial sacral treatment, aquafit programs, psychological counseling, social work, speech language pathology, neuropsychological treatment and any other treatment reasonable and necessary as a result of your car accident. This was a adequate amount of money, which protected Ontario's accident victims and assisted them on their road to recovery.

Under the new system, accident victims in Ontario receive just half of their medical rehabilitative benefits for the same price! Under the same standard car insurance policy, Ontarians will receive just $50,000 for medical and rehabilitative benefits whereas they used to be entitled to up to $100,000 in benefits. Ontarians will essentially be paying the same premiums for 50% less benefits. There is an opt-in premium to increase your medical/rehabilitative coverage to $100,000 or $1,100,000 for an additional fee; but I don't suspect that many Ontarians will opt in for this additional coverage. Many consumers may not even know it exists if their broker doesn't tell them about it.

In my experience, many seriously injured accident victims go through $50,000 in medical and rehabilitative benefits really fast. Once this money gets maxed out, some accident victims have nowhere to turn and no means to pay for treatment.

Another noteworthy change is the reduced limits for attendant care benefits under a standard Ontario car insurance policy. Under the old standard policies, Ontarians were entitled to up to $72,000 in attendant care benefits. Attendant care benefits are meant to compensate the attendants for those accident victims who can no longer care for their own activities of daily living. Some accident victims may need some help bathing, dressing, grooming, feeding, cleaning, picking up toiletries/medications, or just need supervision for safety. The people who perform these duties are called attendants, and the money paid out to them from the insurance company for their time and services are called attendant care benefits.

Starting September 1, 2010, the standard limit of $72,000 for Attendant Care Benefits will be cut in half to just $36,000. Again, Ontarians will be paying the same price for car insurance, with just half the benefits available to them. Like the med/rehab benefits, Ontarians can pay an additional premium for $72,000 or $1,072,000 for increased attendant care benefits, but I imagine that only a small minority will pay that additional premium. And just like the new reduced limits to med/rehab benefits, the new reduced limit of $36,000 for attendant care benefits can go quickly for seriously injured accident victims.

None of this is very good news for Ontario's drivers. The reality is that not many people pay attention to these noteworthy changes until they've been involved in an accident. It's only after you or a loved one becomes injured in a serious car accident that these changes become significant and troublesome.